Insurers target opportuniwwties in agric-value chain

Insurance industry operators have began building capacity that would enable them maximize opportunities in the agricultural value chain, as Nigeria diversifies here economy away from oil.

The insurers believe that there are a lot of activities’ currently happening in the agric value chain that require insurance support to become successful, and so offers opportunity for the sector to deepen penetration and contribute more to economic growth.

Eddie Efekoha, chairman, Nigerian Insurers Association (NIA) said the industry was map out ways of improving insurance contributions to the economy, adding that with the shift in focus from Oil to agriculture, there are ample opportunities for insurance companies to key into the sector and contribute their quota in the agriculture value chain.

The current government is focusing on diversification of the economy from monolithic oil economy to agriculture and on oil related industries.

Economic diversification features prominently in most of the development plans and broad policy agenda of the government, even the more recent Seven-point Agenda touches on diversification with emphasis on making a shift from undue emphasis on oil and gas.

At the core of the infrastructure agenda of the present administration also, is the need to move from an extractive industry fraught with corruption concomitant with limited value-added to the productive sector of the economy.

Efekoha, speaking at the 2017 Chief Executive Officers (CEOs) Retreat organised by the NIA in Lagos pledged to remain focused in addressing four critical areas in line with the theme of his administration, which is “Sustainable Market Development Through Stakeholders Engagement.”

According to him, the four point agenda set by his administration which are Stakeholders’ engagement; enforcement of market discipline; review of NIA’s constitution and greater attention to the NIA House project, are vigorously being pursued.

Efekoha noted that the retreat was designed to map out ways of improving insurance contributions to the economy, adding that with the shift in focus from Oil to agriculture, the retreat provides ample opportunities for insurance companies to key into the sector and contribute their quota in the agriculture value chain.

Adetola Adegbayi, executive director, General Business, Leadway Assurance Company Limited responding on BusinessDay enquiries on recent developments in the industry with regards to entrants of foreign insurers said “The market remains highly competitive and interestingly challenging. The entrant of foreign investors, whether on the underwriting side or the intermediary side, showcases our rich potential as an industry”.

She observed that the impact of such foreign investment is not directly felt, as the number that bought into existing companies have to go through periods of adjustments.”

Adegbayi however expressed optimism, saying “hopefully we will begin to see the dynamism of insurers and brokers as the competitive landscape becomes robust with new ways of brokering and writing risks within a more structured business environment.”

The landscape is already changing subliminally and these changes will become apparent with time, leaving us with a highly robust industry, Adegbayi noted.